Business

CBN Plans To Absorb Bank Debts

Published

16 years ago

January 7, 2010

The Asset Management Company (AMC) guaranteed by the Central Bank of Nigeria (CBN) to absorb rescured banks’ bad debts would be set up in the first quarter of 2010.
Lamido Sanusi Lamido, CBN Govrnor said the company, which was initially planned to come on board before the end of 2009 would now be set up in the first quarter of 2010 as the legislative arm of the government could not finish its work to provide legal backing for the company.
“Now it’s looking like we may spill into early January because there were all sorts of holidays. We’re still optimistic we should get it out of the House of Representatives committee before they go on recess,” Sanusi said.
The CBN boss explained that the legislation would form an AMC, which will exchange bad bank loans for government bonds, is before parliament. He had hoped the legislation would be ready before the end of December but acknowledged that looked set to slip.
It would be recalled that all deposit money banks (DMBs) in Nigeria have announced financial results for the third quarter of 2009 in line with clearly defined and transparent reporting requirements.
CBN said the formation of AMC should facilitate an improvement in banking sector liquidity, protection of the earnings of banks from further erosion and a reduction of the debt overhang on the capital market and participants.
“This should provide a much needed fillip for the revival of the Nigerian capital market,” CBN said. The AMC is expected to take impaired assets off the bank’s balance sheets and replace them with government guaranteed bonds. This will provide liquidity in the entire Nigerian banking system and bolster the prospects for long-term growth.
Mohammed Abdullahi, the Head, Corporate Affairs of the CBN said, “the third quarter earnings announcements for a number of banks have included a level of provisions that have led to reported losses, reflecting the true position of the lending portfolios.
This has been particularly evident in the nine banks assessed to be in a “grave situation’ following the outcome of the combined CBN/NDIC examination”, losses waiting to be soaked up by the AMC.
Finance experts believe that potential investors are waiting to see how quickly an asset management company can be set up to soak up bad debts and make the banks attractive for sale. However, not only is the fate of the money market dependent on the setting up of the AMC, finance experts believe that without it, the stock market as well is not likely to record any sustained recovery.
Bismarck Rewane, an economist and member, Presidential Economic Steering Committee said that “without the Asset Management Company, or the ‘UK bad bank, good bank model, we do not expect a sustained recovery in the stock market. Investors world continue to hold back until the ongoing confusion in the banking system is resolved.”
Mr Lakin Poola, Managing director LP Associates said given the present state of the banking industry, despite the banks’ audit, it will take more than an asset absorbing bad debts company to restore sanity and confidence in the industry, “I am not sure any single event can save this industry,” he added.

Business

FEC Approves Concession Of Port Harcourt lnt’l Airport

Published

1 day ago

November 10, 2025

The Tide

The Federal Executive Council (FEC) on Thursday approved the concession of the Port Harcourt International Airport to private investors for more efficient management and improved service delivery.

Minister of Aviation and Aerospace Management, Festus Keyamo, disclosed this while briefing journalists at the State House, Abuja, shortly after the meeting, presided over by President Bola Ahmed Tinubu, Thursday.

Keyamo, however, assured aviation workers that the concession would not result in job losses, stressing that the government remains committed to protecting workers’ rights while pursuing reforms to make the aviation sector more viable.

“We have two major airports now that we have approvals in terms of the business case to begin to finalise with private investors. One of them is the Port Harcourt International Airport. Let me assure the unions that nobody will lose his job as a result of these concessions. I am pro-union, pro-workers, and I will engage them to ensure they are comfortable with the process, Keyamo said.

The Minister noted that the move was part of government’s effort to ensure that airports operate sustainably.

He explained that many airports currently run at a loss, with revenue from Lagos, Abuja, and Kano used to subsidise others.

“Before we came in, Port Harcourt was a no-go area — no investor was interested. But today, because of the activities of this government, it has become the beautiful bride. Over six investors competed to manage the airport,” he said.

Keyamo also listed other aviation-related approvals secured from FEC, including contracts for the maintenance and support services for airport management solutions across Nigeria’s five international airports; Abuja, Lagos, Kano, Port Harcourt, and Enugu, as well as the procurement and installation of advanced tertiary power systems and navigational aids.

Additionally, the Council approved the purchase of 15 airport rescue and firefighting vehicles to meet International Civil Aviation Organisation (ICAO) standards and the construction of a permanent headquarters for the Nigerian Airspace Management Agency (NAMA) in Abuja.

Another significant approval was the exclusion of all Federal Airports Authority of Nigeria (FAAN) residential properties within and around airports from sale to private individuals, a move aimed at preserving operational safety and security within airport environments.

FEC also approved the concession of biometric verification systems at airports to integrate passengers’ National Identification Numbers (NIN) into boarding processes, enhance aviation security, and curb the use of fake identities.

Keyamo said the ministry also secured approvals for contracts under its 2024 budget to improve lighting systems at airports, enabling night operations and helping local airlines increase passenger capacity and revenue.

“These reforms are designed to make our airports safer, more efficient, and commercially sustainable. We are bringing them to global standards,” the minister affirmed.

Business

Senate Orders NAFDAC To Ban Sachet Alcohol Production by December 2025 ………Lawmakers Warn of Health Crisis, Youth Addiction And Social Disorder From Cheap Liquor

Published

1 day ago

November 10, 2025

The Tide

The Senate has issued a decisive order to the National Agency for Food and Drug Administration and Control (NAFDAC), directing it to enforce a total ban on the production and sale of alcoholic beverages in sachets and small plastic bottles by December 2025, warning that no further extension of the deadline will be tolerated.

The upper chamber’s resolution followed an exhaustive debate on a motion sponsored by Senator Asuquo Ekpenyong (Cross River South), during its sitting, last Thursday.

Ekpenyong who raised the alarm over NAFDAC’s repeated extensions of the phase-out date, despite the grave health and social risks posed by sachet-packaged alcohol reminded the Senate that NAFDAC had initially fixed 2023 as the deadline before shifting it to 2024, and later to 2025, a pattern he said had emboldened manufacturers to lobby for further delays.

He warned that another extension would amount to a betrayal of public trust and a violation of Nigeria’s commitment to global health standards.

Ekpenyong said, “The harmful practice of putting alcohol in sachets makes it as easy to consume as sweets, even for children.

“It promotes addiction, impairs cognitive and psychomotor development and contributes to domestic violence, road accidents and other social vices.”

“Some responsible manufacturers have already complied in good faith. But they are now suffering unfair competition from those who continue to produce and sell non-compliant products. This is both unethical and dangerous.”

The motion drew wide bipartisan support, with lawmakers condemning the proliferation of cheap, high-alcohol-content drinks sold in small sachets, describing them as “silent poisons” targeted at vulnerable Nigerians.

Senator Anthony Ani (Ebonyi South) said sachet-packaged alcohol had become a menace in communities and schools.

“These drinks are cheap, potent and easily accessible to minors. Every day we delay this ban, we endanger our children and destroy more futures,” he said.

Senate President, Godswill Akpabio, who presided over the session, ruled in favour of the motion after what he described as a “sober and urgent debate”.

Akpabio said “Any motion that concerns saving lives is urgent. If we don’t stop this extension, more Nigerians, especially the youth, will continue to be harmed. The Senate of the Federal Republic of Nigeria has spoken: by December 2025, sachet alcohol must become history.”

closing remarks, Akpabio commended senators for taking what he described as a “historic and moral stand” to protect Nigerians from a “slow-killing culture”.

According to him, “This is not just about alcohol regulation. It is about safeguarding the mental and physical health of our people, protecting our children, and preserving the future of this nation.

“We cannot allow sachet alcohol to keep destroying lives under the guise of business.”

closing remarks, Akpabio commended senators for taking what he described as a “historic and moral stand” to protect Nigerians from a “slow-killing culture”.

“We cannot allow sachet alcohol to keep destroying lives under the guise of business.”

“The Senate has spoken clearly. The time for excuses is over. Let this harmful practice end, for the health, safety and sanity of our nation

With this resolution, the Senate has effectively placed NAFDAC and allied agencies under legislative mandate to ensure that by December 2025, sachet and small-volume alcoholic drinks are completely phased out across Nigeria, with no further extensions permitted.

Business

NCDMB Council, Mgt Seek Improvements In Corporate Governance, Performance

Published

1 day ago

November 10, 2025

The Tide

Governing Council and top Management of the Nigerian Content Development and Monitoring Board (NCDMB) in Ikot Ekpene, Akwa-Ibom State held a two-day retreat to deepen understanding of statutory responsibilities, corporate governance principles and strategies for enhanced performance, among others.

The event, held recently, and attended by the Minister of State for Petroleum Resources (Oil) and Chairman of the Governing Council of the Board, Heineken Lokpobiri, the Minister of State for Petroleum Resources (Gas) and Co-Chairman of the Council, Ekperikpe Ekpo, and other members of the Governing Council, was in pursuant of the Board’s shared purpose to sustain momentum and achieve key milestones in local content development in the oil and gas industry,

Represented by the Board’s Director of Capacity Building, Engr. Abayomi Bamidele and a host of other Directors, the Executive Secretary of the Board, Engr. Felix Omatsola-Ogbe said the event was the first retreat by the current Council since its inauguration in the first quarter of 2024.

In his opening address, Lokpobiri thanked Members of the Council and Management for the sense of duty demonstrated in their support and attendance of the Retreat.

He said the event was intended to introduce Members to the workings of the Board as chief implementer of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, and their own statutory roles as supervisors of the agency who have to ensure its effectiveness and success in the delivery of its mandate.

Drawing attention to different sections of the enabling law of the Board, the Minister reiterated the need for the Council and Management to act within statutory limits to foster understanding and trust, which he said were required for team spirit.

He said the NCDMB has become a business enabler to the oil and gas industry, creating optimum conditions for indigenous companies to thrive and thus deepen local content as envisioned by the NOGICD Act.

While noting that there was still room for improvement, he charged the Management to be more forthcoming with information on the activities of the Board as well as challenges whenever they arise.

The Minister of State for Petroleum Resources (Oil), Senator Lokpobiri, thanked the Governor for the warm reception accorded them and for sustaining the standard of performance and service delivery attained by his predecessors.

Earlier in his welcome address, the Executive Secretary of the Board, Engr. Felix Omatsola Ogbe, represented by the Director, Capacity Building, Engr. Bamidele Abayomi, expressed profound appreciation to the Chairman and Co-Chairman of the Governing Council and other participants stating that the event represented a unique opportunity for mutual interaction, strategic bonding, and a deeper understanding of the operations, challenges, and aspirations of the Board.

He said the event was the first retreat for the current Council since its inauguration in the first quarter of 2024, noting that the functions of the Council, which revolve around providing policy direction, approving strategic operational plans, and ensuring effective implementation of the Nigerian Content Policy, are outlined in Section 75 of NOGICD Act, adding 5that the commitment of its members to the vision and mandate of the Board has been instrumental in sustaining momentum and achieving key milestones.

Ogbe noted that the Retreat would bring to light challenges faced by the NCDMB stating that the invaluable guidance of council members on how best to surmount such was required, whether through policy directives, regulatory interventions, or strategic partnership.

He hinted that heads of the Directorates of the Board were available to provide detailed insights into their operations, achievements and constraints, citing the establishment of the Nigerian Content Intervention Fund (NCIF), the successful implementation of the 10-Year Strategic Road Map (2017-2027), and commitment to deepening local content which he said was currently at 56 per cent, up from five per cent in 2010, as contributory factors in its attainment of significant in-country value retention and attraction of investments to the oil and gas industry.

Responding, the Governor expressed appreciation to the NCDMB for not only choosing Akwa Ibom for the Retreat but for a number of interventions in capacity building in his State.

He drew attention to the State’s development of an Oxygen Production Plant and its plans for utilisation of compressed natural gas (CNG), expressing hope of collaboration with the Board in such areas.

On the NCDMB’S team at the Retreat were Engr. Bamidele Abayomi, Director, Capacity Building; Naboth Onyesoh, Director Legal Services, Mr. Silas Ajimijaye, General Manager, Monitoring and Evaluation – Midstream, Ms. Tassala Tersugh, General Manager, Midstream, Mr. Teddy Bai, Deputy Manager, Government Relations, Engr. John Barigha, Supervisor, Marine Vessel Categorisation, Ikenna Ezeguzo, Supervisor, Movable Assets, and Mr. Prince Foncha, Officer, Corporate Communications Division.

The Tide reports that a major highlight of the Retreat was the paper presentations by renowned experts and thought leaders drawn from different professions.

Highpoints of the event was a courtesy visit by the Governing Council and Management of the Board to the Governor of Akwa Ibom State, Pastor Udo Eno, at Government House, Uyo..

By Ariwera Ibibo-Howells, Yenagoa